Hugo Chavez ramps up nationalisation drive in Venezuela

Hugo Chavez the president of Venezuela, has announced the expropriation of two companies, the latest among hundreds of enterprises taken over by the state as part of the socialist leader's campaign to nationalise large parts of the country's economy.

Foreign oil companies are unwelcome in a country where president Hugo Chavez has taken control of key parts of the economyPhoto: REUTERS

7:00AM BST 11 Oct 2010

Mr Chavez also said Venezuela would take over about 494,000 acres of farm and ranch land after reaching an agreement with the British owner.

On his weekly television and radio show, Mr Chavez said the "forced acquisition" of Industrias Venoco CA, a maker of lubricants, would take effect when the decree is published in the Official Gazette.

His government had been threatening for two years to take over the company.

Mr Chavez complained that companies like Venoco buy petroleum from the state oil company, Petroleos de Venezuela SA, and then make big profits by refining it into commercial products.

"They have plants, they have money ... and lubricants produce and sell for four to five times more than they cost" as raw materials, he said. "You are going to see how we will achieve this at lower costs, prices," he added.